08. The Real Estate Professional Status

Jul 20, 2017

In this episode we discuss the Real Estate Professional tax status. What is it? What is it not? And when can (and should) you use this tax status to your advantage.

We define what a Real Estate Professional is and how to qualify. We also launch into a couple examples of great times to use the Real Estate Professional status. Non-working spouses and cost segregation studies will allow us to qualify for the Status and maximize single year write-offs.

We also discuss how you should track your time to audit proof your return.

Enjoy!

Episode 7: Top Tax Mistakes Real Estate Investors Make

Jun 12, 2017

Weeeeee’re back! Due to the overwhelming encouragement of clients and non clients, I’ve decided to jump back on the content (specifically podcasts) and get information out there for you to consume. We’ve revamped the podcast to give it that sexy, but not “suit and tie” feel. Let me know how you like it by emailing me at contact@therealestatecpa.com.

June’s podcast goes over three of the ten top tax mistakes I wrote about here that I commonly see. Specifically, we dive into:

  1. Why you cannot deduct your monthly escrow payments (insurance and property taxes).
  2. Why 529 plans STINK if you’re a real estate investor or a business owner.
  3. When you should, and when you shouldn’t, pursue a 1031 exchange (and a 5 minute trick that could save you thousands of dollars).

Hope you enjoy. Like I said, drop me a line at contact@therealestatecpa.com if you like what we’ve done or if you have topic suggestions.

 

Episode #6 – Using Cash on Cash Return in Your Real Estate Investments

Jun 27, 2016

Cash on Cash return is a popular metric used by real estate investors of all levels. Today we discuss how useful the metric is, when you should use it, and the pitfalls you shouldn’t ignore. We also discuss alternative metrics that you can use in your real estate business.

This podcast stemmed from an article I wrote for Bigger Pockets which you can see here: https://www.biggerpockets.com/renewsblog/2016/06/10/cash-on-cash-return-2/

Episode #5 – Rental Property Improvements and Taxes

Jun 19, 2016

Rental properties break down. At some point, you’ll have to make the decision to make minor repairs or a completely replace building components. Rental property improvements versus repairs have significant tax implications, some of which we talk about today.

I share my personal story about turning over one of my own units. I walk you through the thought process of a landlord and a CPA who wants to maximize tax deductions and subsequently my returns.

Related: Are Home Improvements Tax Deductible

Episode #4 – Using LLCs In Your Real Estate Business

Jun 14, 2016

Today’s show focuses on whether or not you should use LLCs as an investor or a flipper. We start off with a crazy story which we hope none of you ever have to personally go through and we then follow it up with a tax and accounting look at how LLCs affect your business.

Specifically, we discuss:
– How an LLC affect your tax situation;
– Why some flippers open and close an LLC per flip;
– What the cost implications of partnerships and S-Corps are.

Please leave us a review on SoundCloud and like us on Facebook and follow us on Twitter. If you have any podcast ideas, please send them to contact @ therealestatecpa.com.

Episode #3 – House Hacking: The Tax Side to Living for Free

Jun 6, 2016

Join us for episode 3 which goes into details about house hacking, why it makes financial sense, and also what the tax implications of house hacking are. We talk about why house hacking is great from a tax perspective, and why you should also tread with caution. You’ll learn what you should be considering prior to making that purchase and going through with house hacking. Don’t get caught in a tax trap that could have been avoided by listening to this episode!

The Higher Earner vs. The Smart Investor: Who’s Better Off Financially? [A Case Study!]

Episode #2 – Tax Strategies for Your AirBnB Rentals

May 29, 2016

AirBnB is a great way to generate additional income from your non-occupied rooms. It’s also an excellent investment strategy and can generate higher returns than traditional rentals. But the tax impacts of an AirBnB rentals can wipe out your returns.

On today’s podcast, we discuss the tax implications of renting via AirBnB and how to avoid the dreaded self-employment taxes on the rental income you are generating.

Episode #1 – Documentation: The Key to Tax Savings

Apr 22, 2016

Tax deductions are critical for any business – on episode 1 of The Real Estate CPA, I discuss how important it is to document business receipts. You’ll benefit by learning about tips and tricks, what expenses you should be documenting, and how to document them. Best of all, I’ll tell you about cloud based documentation systems that you should be implementing in your business today!